IEF Warns G20 Energy Ministers on Non-OPEC Supply Recovery
IEF Secretary General Joseph McMonigle updated top energy ministers gathered at the G20 Energy Ministerial meeting on September 27 with a warning about non-OPEC supply recovery after the pandemic.
McMonigle provided an update to energy ministers on market stability as part of a panel with IEF counterpart leaders of OPEC and IEA.
The virtual G20 Energy Ministerial Meeting, held on September 27 and 28, was hosted by Saudi Arabia Minister of Energy HRH Prince Abdulaziz bin Salman during the G20 Presidency of the Kingdom of Saudi Arabia.
In prepared remarks, McMonigle commended ministers for their "historic efforts to help absorb the severe shock that COVID-19 dealt to the global energy sector" saying it has "strengthened the producer consumer dialogue."
But McMonigle expressed concern "non-OPEC supply will not recover as swiftly as demand. Oil markets are threatened with a loss of supply resilience if there is no action to address the sharp drops in energy sector investment, rising market uncertainties, and persistent high inventory levels."
Better quality and more transparent data are a key component for the recovery, McMonigle explained. "Collaboration on enhancing data transparency in the energy sector will improve policy and investment decisions,” he said. "That transparency can help supply recover in step with demand across all energy sectors. It can also help nations achieve universal energy access and emission reduction goals, while also reducing transition costs by benchmarking smart technology advances in hydrocarbons, renewables, nuclear, and electrification."
The Secretary General said future dialogue at the ministerial level will continue at the forthcoming 7th IEF-IGU Ministerial Gas Forum hosted by Malaysia in early December 2020 and the 17th IEF International Energy Ministerial hosted by the Kingdom of Saudi Arabia in 2021.